Glossary

Written customary rules of a desa adat or banjar adat that govern ceremonies, conduct, and local obligations.

Customary village segment handling ritual obligations and social harmony—parallel but linked to dinas paperwork.

Administrative neighborhood unit distinct from adat customs—permits and letters often route here.

Mandatory legal distance between a building and roads, rivers, or boundaries.

Rural village administrative layer beneath regency—permits and ceremonies route through desa offices.

Legal and physical verification before you commit—title, zoning (ITR), permits (PBG), encumbrances, and disputes. Skipping it is a common source of loss.

Contract language covering volcanic, seismic, epidemic, or government closure scenarios—read before counting decades of yield.

A master lease over a large plot that is later split into individual villa interests; common in managed villa compounds.

Protected agricultural or conservation land where construction is restricted; high compliance and demolition risk if a villa sits on the wrong zoning.

Licensed nightly bed counts and room tallies—OTA calendars must stay inside what permits allow.

A titled right to use land or a unit, sometimes relevant for foreign buyers under specific setups—details depend on asset class and eligibility.

A title held by legal entities (e.g. PT PMA) giving the right to build on state land for a fixed period, often relevant in structured investments.

The key building permit framework in Indonesia (transitioned from IMB toward PBG). It defines legal building use and is critical for risk control.

Indonesian planning label for green belt or protected non-built strips; property listings may gloss over what it implies.

Urban ward administration—denser Kutuh-style pockets may sit under kelurahan workflows.

A pre-lease condition record that documents existing property issues before tenant occupancy.

Contract language that controls how a lease can be extended after expiry; one of the highest-impact lines in leasehold deals.

Freehold is ownership for eligible holders on qualifying land. Leasehold is a contract giving use for years—common for villas and land.

A high-risk legacy structure where a local name is used to hold land for a foreign party.

Indonesian notaries are public officials who draft authentic deeds (including many land transfers)—not the same role as in some Western countries.

Tourism-designated zoning where legal short-term villa rental licensing is typically possible.

A clause giving the current tenant/investor first opportunity to buy or extend before third parties.

Explicit lease permission to rent onward—without it, short-term listing platforms may breach contract.

Building rights certificate tied to state land—often paired with corporate structures.

Sertifikat Hak Milik—full ownership certificate for qualifying Indonesian individuals on eligible land.

Mandatory holiday bonus payment for eligible employees in Indonesia.

Residential zoning in Bali spatial plans, typically the target zone for standard long-term villa living and non-tourism use.